The end of the month is drawing near. For small and medium-sized business owners handling month-end close of their books, that means one thing: crunch time. Lots of strong coffee and too many extra work hours.

Canadian business owners allocate 20% of their time to financial management, down from 30% in the past. Our own State of SMB report found that half of businesses are spending 10 to 40 hours a month on payments and reconciliation. These are hours that owners could be devoting to growing their businesses and staying ahead of competitors.

Closing the books accurately and efficiently is the key to maintaining accurate financial records, avoiding costly mistakes and giving owners the insights they need to make smart decisions.

These decisions matter to small business owners, who are still working to find solid ground after a challenging few years that left nearly a third of them struggling with managing cash flow and overall business spending. 

But let’s be honest: month-end closures in most businesses can feel like a full-out scramble. Whether dealing with manual reconciliations, tight deadlines or data inconsistencies, this guide will walk you through the most significant challenges and the best strategies to overcome them.

What is month-end close?

Month-end close is the process businesses use to wrap up their financials from the previous month. It’s all about ensuring you account for every transaction, correctly categorize every expense, and prepare accurate financial reports. Yep, you’re chasing receipts, random charges on cards and whatever that scrap of paper from your sales lead was supposed to mean.

For many businesses, this means reconciling accounts, reviewing bank statements and adjusting journal entries. You’ll be managing mileage reimbursements, expense reimbursements and per diem calculations when needed. It can be a tedious process, especially when done manually. You may need to coordinate with other people in the company or other teams to gather the necessary information. 

However, managing month-end close efficiently gives business owners the financial clarity they need to make informed decisions and comply with regulations.

Understanding the accounting month-end close process

Month-end close is an opportunity to wrap up numbers regularly throughout the year, but its impact goes beyond simple calculations. A structured process means fewer errors, smoother reporting and a clearer picture of your company’s financial health. 

The clarity gained from your month-end close ensures financial stability and clarity for your business. When done efficiently, it can save valuable time and allow you to make faster, more informed decisions. 

Without a solid month-end process, businesses risk inaccuracies, delays and missed opportunities to optimize their finances.

What are the steps for month-end close?

A smooth month-end closing process doesn’t happen by accident. Instead, it requires a clear, repeatable set of steps that keeps everything on track. Without structure, it’s easy to overlook key details, leading to delays, errors, and frustration for everyone involved. 

Understanding the steps in your month-end close procedures and why they matter can help you ensure accuracy. 

Here are the essential elements of a month-end close and what they entail:

1. Organize and prepare for the process

Set deadlines, assign responsibilities and gather all necessary financial data upfront.

2. Consolidate your financial data

Ensure you have complete revenue, expenses, payroll and accounts payable/receivable records.

3. Reconcile your accounts

Match transactions to statements to catch any discrepancies before they become more significant problems.

4. Adjust entries as needed

Account for items like accrued expenses, depreciation and prepaid costs to keep everything accurate.

5. Create and review financial statements

Generate your balance sheet, income statement and cash flow statement to finalize the process.

6. Review for accuracy

Ensure you’ve captured all relevant information, double-check that your month-end close is clean and review statements before distributing them.

How long does month-end close typically take?

A few factors will impact how long it takes you to work through each month-end close: company size, complexity and whether you’re using manual or automated processes. Some businesses can wrap up in a few days, while others might take up to two weeks. 

💡Pro tip: Businesses using automation tools have reduced close time from days to a few hours. Sounds like magic, we know, but nope, it’s doable.

Speeding up the month-end close isn’t just about saving time. It directly impacts a business’s ability to make timely and informed decisions. A faster close means businesses can review performance sooner, identify trends earlier and make smarter choices before the next month is already halfway over.

Challenges faced during month-end close

Do your stress levels spike every time the end of the month approaches? If month-end close feels like a constant battle, you’re not alone. Many business owners struggle with data inconsistencies, tight deadlines and inefficient manual processes that make closing the books stressful and time-consuming. 

Inaccurate financial data or rushed reconciliations can lead to reporting errors that impact decision-making. Understanding these challenges is the first step in overcoming them and making month-end close smoother and more predictable—and getting a solid night’s sleep.

Let’s look at some common challenges and barriers to a streamlined month-end close:

Data accuracy and consistency

Nobody wants to scramble at the last minute to fix errors. But without a solid process, inaccuracies creep in. Manual data entry, missing transaction details and last-minute adjustments can throw everything off, leading to delays and frustration.

Time constraints

Anyone handling month end books operates under tight deadlines. Company owners need accurate financials promptly to make business decisions. Without automation, it’s easy to get stuck in a cycle of reviewing, adjusting and chasing down missing information, making it hard to close the books on time.

Manual entry and reconciliation

Are you still relying on spreadsheets? That’s a recipe for long hours and potential mistakes. Manual reconciliations take up valuable time, and when details are missing, you or your bookkeeper have to track down employees for clarification. It’s inefficient and stressful.

Disconnects or lack of context 

An external bookkeeper may not have the context needed to reconcile every transaction. Guessing risks accuracy, but asking for details causes delays. Recurring expenses may take too much time, leaving fewer opportunities to find and examine more serious inconsistencies. 

Effective strategies to improve your processes

A chaotic month-end close can be frustrating and have real consequences for business operations. The good news is that you can streamline your workflows, reduce stress and improve accuracy with the right strategies. 

Let’s dial down the adrenaline a few levels. Leveraging automation and standardizing procedures allows you to spend less time on tedious tasks and more time driving financial insights that add real value to the business.

Automation

It could be time for an upgrade if you’re still doing most of your month-end close manually. Tools like Float bring corporate cards, expense management and bill payments into one system, making reconciliations automatic. With pre-set rules for transaction coding, businesses can drastically cut down on manual work, speeding up the close process.

Standardize financial procedures

A set process for tracking expenses, coding transactions and handling reconciliations makes a huge difference. A comprehensive expense policy that covers the most likely situations can also help reduce errors and murk. The more standardized your financial workflows are, the fewer surprises you’ll run into at month-end.

Schedule regular financial reviews

Catching errors early saves headaches later. Monthly reconciliations help prevent financial inconsistencies from snowballing, making your books cleaner and more accurate over time.

Close sub-ledgers periodically

Waiting until the last minute to reconcile everything? That’s a surefire way to make month-end more stressful. Instead, closing sub-ledgers throughout the month keeps everything in check and prevents a backlog of work at the end.

Collaborate and communicate

Finance isn’t an island. Expense reports, approvals and coding all depend on other teams. The better your communication with employees, the easier it is to keep things running smoothly.

Set realistic deadlines

Reverse-engineering your timeline can help you close on time. Start with your final reporting date and work backward, setting clear deadlines for each step of the process. This keeps everything on track and prevents last-minute chaos.

Month-end checklists

A well-organized checklist can shift your month-end closing process from a stressful scramble into a smooth, predictable process. A structured approach helps businesses reduce errors, maintain compliance and ensure financial clarity. 

Having a clear list of financial records to gather and key tasks to complete makes it easier to stay on track and avoid last-minute surprises. 

Here’s what you’ll need in two handy month-end checklists.

Key financial records:

✅ Revenue and sales data

✅ Accounts receivable and payable reports

✅ Expense receipts and supplier invoices

✅ Bank statements and reconciliations

✅ Payroll data

✅ Inventory totals (if applicable)

✅ Balance sheets

✅ Income and expense accounts

✅ General ledger and sub-ledger reports

Key tasks to complete:

✅ Enter all invoices and transactions into the accounting system

✅ Reconcile all bank accounts and financial records

✅ Review and adjust journal entries as needed

✅ Generate and review financial statements

✅ Close the period in the financial system

✅ Distribute reports to key stakeholders

How Float can help simplify your month-end process

The end of the month doesn’t have to be a headache. You can eliminate the complexity of closing your books by automating transaction categorization, reconciliation, and reporting. 

By integrating corporate cards, expense management, and bill payments, Float helps businesses eliminate manual tasks and speed up financial workflows.

With Float, you can:

• Automate transaction coding, which means no more manual expense categorization
• Gain real-time visibility to track spending and reconcile transactions instantly
• Save time on reconciliation and reduce close times from days to hours
• Lower bookkeeping costs by automating processes and reducing reliance on external accountants

If you want to reclaim valuable time and improve accuracy, Float is the smart choice for making month-end close easier and more efficient.

Tracking business expenses shouldn’t feel like a never-ending paper trail. Yet for many Canadian companies, managing spending still involves manual processes, scattered receipts and reactive budgeting. The result is wasted time, financial blind spots and compliance headaches that slow down growth and frustrate staff—but thankfully, modern expense management solutions are here to stay. 

By digitizing and automating how your business tracks, categorizes and reports expenses, you can save time, reduce risk and optimize budgets, all while making it simpler for your team to spend like they need to.

In this guide, we’re breaking it all down so you can learn:

• What is expense management? 
• Why modernize expense management?
• How does expense management work?
• Expense management vs. spend management
• Types of common business expenses and examples 
• The benefits of an expense management system
• How to track business expenses 
• Best expense management software

Let’s dive in. 

What is expense management? 

Expense management is the process businesses use to track, categorize, approve and report company spending. It ensures that all employee purchases and expense reimbursements are accounted for and aligned with company policies.

Traditionally, expense management involved paper receipts, spreadsheets and manual approvals, making it slow, error-prone and frustrating for both employees and finance teams. Lost receipts, delayed reimbursements and lack of real-time visibility meant businesses often struggled to keep spending under control. Many businesses still operate this way today. 

Modern expense management solutions eliminate these inefficiencies by automating the entire process. With features like real-time transaction tracking, digital receipt uploads, automated approvals and integrated reporting, businesses can gain full visibility and control over their expenses, without the administrative burden.

Get Your Free Expense Policy Template 

A clear expense policy is the foundation of good expense management. Not sure where to start? We’ve got you covered. 

This free template will help you: 

• Save time with a ready-to-use policy framework
• Customize it to fit your company’s needs
• Stay compliant with clear expense guidelines

Download your free Expense Policy Template for Notion or Google Docs and take the guesswork out of managing employee expenses. 

Why modernize expense management? 

Outdated expense management processes waste time, increase errors and limit financial visibility. According to a Float study, 66% of Canadian SMBs say their team spends too much time on manual data entry, and 50% spend 10 to 40 hours a month on payments and reconciliation. These inefficiencies add up, draining resources and slowing down growth.

Instead, here’s what modern expense management can do:

• Eliminate manual inefficiencies – Paper receipts and spreadsheets lead to delays, errors and unnecessary admin work. Automation removes these bottlenecks. 
• Improve accuracy and compliance – Automated approvals and real-time tracking ensure expenses are tracked correctly and follow company policies, reducing the risk of non-compliance.
• Enhance financial visibility – Businesses get real-time insights into spending trends, making it easier to track budgets, control costs and make informed financial decisions.
• Speed up reimbursements – Employees no longer wait weeks for expense approvals and payments, improving cash flow and reducing frustration. Faster processing also means fewer payroll headaches for finance teams.
• Reduce fraud and errors – Digital tracking flags duplicate transactions, unauthorized expenses, and out-of-policy spending before they become costly mistakes. 

How does expense management work?

Modern expense management systems streamline spending by automating the entire process—from capturing expenses to reporting and analysis.

It starts with capturing expenses. No more lost paperwork or digging through inboxes, because employees can snap a photo of a paper receipt, upload a PDF or forward a digital copy via email to a receipt inbox. Their transactions are then categorized automatically, ensuring business expenses—whether for travel, meals or office supplies—are tracked in the right place.

Once submitted, expenses go through approvals and policy enforcement, following company guidelines to prevent unauthorized spending. Employees then receive faster reimbursements, eliminating long wait times and reducing frustration.

Finally, finance teams can leverage real-time reporting and analysis to gain visibility into spending trends, optimize budgets, and identify cost-saving opportunities.

Expense management vs. spend management

Expense management and spend management serve distinct functions in your organization’s financial strategy.

Expense management focuses on tracking and processing employee expenses, such as travel, meals, office supplies and reimbursements. It ensures that individual spending follows the company expense policy and is properly recorded for accounting and compliance purposes.

Spend management takes a broader approach by overseeing all company expenditures—including vendor payments, procurement, software subscriptions and operational costs. It’s about controlling and optimizing how money flows through the business to improve cash flow, budgeting and cost efficiency.

Here’s a quick comparison:

Feature	Expense Management	Spend Management
Focus	Employee expenses: • Travel • Meals • Office supplies	All business spending: • Vendor payments • Procurement • Software • Operations
Objective	Streamline reimbursement and compliance	Optimize overall spending strategy
Scope	Individual transactions	Company-wide financial oversight
Benefits	• Faster reimbursements • Policy compliance • Accurate tracking	• Cost control • Better cash flow management • Improved vendor relationships

While expense management ensures that employee spending is efficient and compliant, spend management gives businesses a holistic view of all financial outflows, helping you control costs and plan smarter. For growing businesses, using both is key to financial stability.

Types of common business expenses and examples

Businesses spend money in a lot of different ways. Keeping those expenses organized by type makes it easier to track spending, enforce policies and stay on budget. Here are some of the most common expense categories: 

Operational expenses

OpEx are your everyday costs for running the business, like office supplies, utilities, software subscriptions and equipment maintenance. Keeping track of operational expenses helps you manage overhead effectively.

Travel and entertainment

This accounts for flights, hotels, meals and client entertainment when employees are on the road. Some businesses opt to reimburse individual receipts, while others use per diems—a daily fixed amount to cover travel-related costs.

💡Pro tip: If your business offers a per diem, make sure it aligns with per diem Canada rates set by the CRA. Following these guidelines helps ensure compliance while simplifying expense tracking for both employees and finance teams.

Employee reimbursements 

Employees often pay for work-related expenses out-of-pocket and submit claims for reimbursement. This can include mileage, meals or office supplies purchased for business purposes.

💡Pro tip: If your employees drive for work, use our free mileage calculator to maximize the benefits of the mileage reimbursement Canada offers. 

Corporate card expenses

Purchases made on company-issued corporate cards, such as team-wide software, client gifts, or office expenses. Unlike traditional credit cards, corporate cards offer built-in spend controls and automated approvals, making credit card expense management more efficient.

💡Pro tip: Using corporate cards with pre-set limits and real-time tracking helps businesses prevent unauthorized purchases and simplify credit card expense management, eliminating the need for manual reconciliation and chasing receipts.

Recurring vs. one-time expenses

Some expenses happen regularly, like subscription fees for software, memberships and service retainers, while others are one-time purchases like new office furniture or event tickets. Keeping these expenses organized helps businesses budget more effectively.

Of course, every business has unique spending needs, and these are just a few of the most common categories. A modern expense management system helps you track and organize all expenses in a way that makes sense for your business.

Benefits of an expense management system

Managing expenses manually is slow, tedious and error-prone. A modern expense management system automates the process—and that comes with its perks.

Save time

One of the biggest advantages is time savings. With a modern system in place, expenses are categorized instantly, approvals move faster, and reimbursements happen without delays. Your finance team no longer spends hours on tedious data entry, freeing them up for more strategic work and helping boost productivity.

Reduce risk

The right expense management system also reduces financial risk by providing real-time insight into company spending. With better tracking and dashboards, your business can prevent overspending, improve cash flow management and gain visibility into trends that impact profitability. Cost optimization improves, because you have the information readily available to make smarter spending decisions.

Stay audit-ready

At the same time, compliance becomes simpler, because you can enforce spending policies, catch duplicate or non-compliant expenses, and keep your business audit-ready. With automated approvals and policy controls, it’s easier to ensure every expense follows both your internal guidelines and regulatory requirements.

At its core, a modern expense management system smooths friction, makes spending simpler for everyone in the business, and boosts employee morale. 

How to track business expenses

For employees, business expense management should be simple. A good expense management system makes it easy to submit purchases, get approvals and receive reimbursements without unnecessary back-and-forth.

In short, here’s what employees need to do:

1. Capture the expense – Snap a photo of the receipt, upload a PDF or forward a digital receipt via email.
2. Confirm the details – Review automatically categorized expenses to ensure accuracy.
3. Submit for approval – Expenses that follow company policy move forward quickly, while flagged items get reviewed.
4. Get reimbursed – Once approved, you’ll get reimbursed quickly. 

With the right system in place, it’s truly that simple! 

How to choose the right business expense management software

With so many tools available, you may be wondering what’s the best app for managing business expenses?

Not all tools are created equal. The right software for expense management should make tracking and managing expenses effortless while aligning with your business needs.

Here’s what to look for when choosing a solution:

Feature	Does the solution…
Ease of use	☑️ Allow employees to submit expenses easily via receipt photos, PDFs or email?
Automation	☑️ Categorize expenses, enforce policies and streamline approvals without manual work?
Real-time tracking	☑️ Provide live updates on spending so finance teams can monitor cash flow instantly?
Accounting integration	☑️ Sync with your existing financial systems to simplify reconciliation?
	☑️ Enforce company policies, flag unauthorized expenses and keep the business audit-ready?
	☑️ Ensure employees get reimbursed quickly without delays?
	☑️ Grow with your business without becoming clunky or outdated?

The right software for expense management will check off everything on this list and make your finance team look like the rockstars they are.

Best expense management software

There’s no one-size-fits-all solution for business expense management. Many software options on the market act as point solutions, meaning they handle only one part of the full expense management equation—whether it’s receipt tracking, approvals, or reimbursements—requiring businesses to connect multiple tools to cover their needs.

The best expense management software for your business depends on factors like company size, spending habits, and integration needs. Some platforms are built for small teams looking for simple receipt tracking, while others cater to larger companies in need of advanced automation and compliance controls.

Here’s a snapshot of some of the top options in Canada:

Expensify: A global business expense management software with receipt scanning (vs automatic receipt capture via text or app), automated approvals and integrations with accounting software. A viable option for businesses that need international functionality. Cost is a factor here, with per user rates as high as $36 per user per month.

SAP Concur: A more robust enterprise-level solution with travel and expense management features, ideal for larger organizations with complex reporting needs. No corporate card or rewards available.

Emburse Certify: Offers automated expense reporting and reimbursement tools with policy enforcement and mobile-friendly receipt capture.

QuickBooks Online: A small business accounting system whose mobile app offers basic expense automation like receipt snapping and email inbox forwarding.

Float: (That’s us!) We’re a Canadian-built platform offering one central solution for smart corporate cards, automated expense tracking and real-time spending controls—eliminating the need to stitch together multiple tools.

Why Canadian businesses choose Float

Float gives companies complete control over their finances, all within one platform. Unlike traditional corporate cards and expense tools that encourage spending, Float expense management is designed to help businesses spend smarter, not more.

Key features that set Float apart

Finance leaders love how much time and effort Float saves. Just ask Zach Hill, Director of Finance at Athennian:

“We’ve been able to reduce our number of manual expense reports by 80% even with our company headcount growing nearly 40%.”

Zach Hill, Director of Finance at Athennian

Here are just a few reasons why:

• Corporate cards, built for control – Issue company cards with custom limits and automatic compliance controls, so there’s no risk of overspending.
• Real-time expense management – Employees submit receipts instantly, while finance teams track spending in one easy-to-use platform.
• Automated approvals – One-click approvals streamline spend requests, keeping purchases in check without back-and-forth emails.
• Integrated accounting – Direct integrations with QuickBooks, Xero and NetSuite make reconciliation seamless and cut down month-end workloads.
• Cost-saving features – Earn 1% cashback, 4% interest on deposits and avoid FX fees with USD cards.

As a business owner or manager, you know that keeping track of employee expenses can be a time-consuming and tedious task. But did you know that having a clear expense reimbursement policy in place can actually benefit your company in numerous ways? In this article, we’ll dive into the definition of expense reimbursement, explore the advantages it offers businesses, and provide tips for streamlining the process.

Expense reimbursement is a critical aspect of managing your company’s finances and expense management as a whole. It also ensures that your employees are not burdened with out-of-pocket costs incurred while performing their job duties. By understanding the ins and outs of expense reimbursement, you can create a system that works for your business and your team, ultimately saving time and money in the long run.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

Learn More

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What is expense reimbursement?

Expense reimbursement is the process of paying back employees for out-of-pocket expenses incurred while performing their job duties. Common reimbursable expenses include travel, meals, lodging, and supplies. It’s important to note that reimbursements are separate from regular wages and are not considered taxable income.

Why is expense reimbursement important for businesses?

Encouraging employees to make necessary purchases without worrying about personal financial burden is a key benefit of expense reimbursement. This allows companies to maintain control over spending while empowering employees to make timely decisions. Expense reimbursement also provides transparency and accountability in business spending, streamlining purchasing processes and speeding up the supply chain.

What are some examples of reimbursable expenses?

• Travel costs: Airfare, lodging, transportation, and meals incurred during business trips are typically reimbursable.
• Supplies and tools: Expenses for items like computers or stationery necessary for job performance can be reimbursed.
• Client entertainment: Costs associated with entertaining clients, such as meals or event tickets, may be reimbursable.
• Professional development: Expenses related to attending conferences or training to improve job skills are often eligible for reimbursement.
• Mileage reimbursement: Employees using personal vehicles for business purposes can be reimbursed for mileage at a set rate.
• Remote work expenses: Costs associated with working from home, such as internet, cell phone, and home office setup, may be reimbursable.

It’s also important to understand reimbursable expenses under the Canadian CRA requirements. Generally, expenses must be reasonable and directly related to earning business income to qualify for reimbursement.

How can companies streamline the reimbursement process?

Implementing clear expense policies that outline what is reimbursable and set spending limits is crucial for streamlining the reimbursement process. Using automated employee expense reimbursement software can help track and manage expenses more efficiently. Requiring timely submission of expense reports and receipts, setting up direct deposit for quick, paperless reimbursements, and regularly reviewing and updating expense policies are also key steps in optimizing the process.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

Learn More

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What are the benefits of automating expense reimbursements?

Automating expense reimbursements can save significant time by eliminating manual data entry and paperwork. Automated systems can reduce errors and fraud by enforcing company policies and providing real-time visibility into spending trends. Integrating with accounting systems allows for seamless reporting and reconciliation, while improving employee satisfaction with a faster, more convenient reimbursement process.

Looking to automate your reimbursement processes with a modern software but struggling to decide with so many options out there? Review our guide on How to Choose the Right Reimbursement Solution in 2024.

How can automated solutions simplify employee reimbursements?

• Mobile app submission: Allows employees to easily submit expenses on-the-go via a user-friendly mobile app.
• Automatic policy enforcement: Automatically enforces company spending policies and flags out-of-policy expenses for review.
• Streamlined approval and reimbursement: Routes reports for approval and reimburses employees via direct deposit, eliminating manual steps.
• Detailed analytics: Provides detailed spending analytics to optimize budgets and catch potential fraud early.
• Accounting integration: Syncs expense data with accounting systems to save time on month-end close and ensure accurate financial reporting.

Best Expense Reimbursement Solution for Canadian Businesses — Float

If you’re looking to streamline your company’s expense reimbursement process, Float can help. Float’s automated solution simplifies employee reimbursements, saves time, and provides real-time visibility into spending trends. Learn more about Float’s Reimbursements and Mileage Tracking products.

While free expense report solutions can significantly improve your financial processes, they may lack advanced features like AI-powered automation and direct payout capabilities. That’s where we come in. Get started for free with Float’s powerful expense management platform designed specifically for Canadian businesses.

Frequently Asked Questions

Can I get reimbursed for expenses if I don’t have a receipt?

Yes, reputable solutions prioritize data security and comply with industry standards like SSL encryption and regular backups.

What happens if I submit an expense report late?

Submitting expense reports past the deadline may result in delayed reimbursement or rejection of the claim. Aim to submit reports promptly to avoid issues. Read more about expense report best practices.

How do I know if an expense is reimbursable?

Your company’s expense policy should clearly outline what types of expenses are eligible for reimbursement. When in doubt, ask your manager or HR department for clarification.

How much does Float cost?

Float is Free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn 4% interest on deposits, reimburse employees and pay vendor bills. If you need more sophisticated functionality, like over 20 physical cards, Netsuite integration, or an API solution, you will have to consider our paid Professional and Enterprise plans.

Does Float offer Credit Card Limit?

Float offers Charge Card and Prepaid funding models. You can apply (*Conditions apply. Book a demo to learn more) for unsecured, 30-day credit terms with high limits up to $1M, no credit checks and personal guarantees. Prepaid model offers 4% interest on all deposits with no cash lockups with account opening in < 24 hours.

How does Float help businesses save 7% of their spend?

Unlike traditional cards that get you to spend more, Float is the only corporate card in the world that helps businesses spend less. Through a combination of financial rewards like our 1% cashback, 4% interest on deposits, no FX fees with our USD cards and time savings of at least 8 hours per employee Float’s customers on average save 7% on their spend.

If you drive your personal vehicle for work, you may be wondering how mileage reimbursement works and what expenses it covers. As an employee, it’s important to understand your company’s mileage reimbursement policy to ensure you’re being fairly compensated for the costs of using your own car for business purposes.

In this article, we’ll provide a quick overview of mileage reimbursement in Canada, including what it is, how it works, and what types of trips are eligible for reimbursement. We’ll also cover the CRA’s standard mileage rate, recordkeeping requirements, and some alternatives to traditional mileage reimbursement programs.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

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What is mileage reimbursement?

Mileage reimbursement is the compensation an employer pays employees for using their personal vehicle for business purposes. This covers costs like gas, maintenance, insurance, and depreciation for the business use portion of the vehicle.

Employers typically reimburse employees at a cents-per-mile rate, which can vary by company. Some use the CRA standard mileage rate, while others set their own rate.

How does mileage reimbursement work?

To claim mileage reimbursement, employees track their business mileage, often using an app or mileage log. They submit expense reports detailing the date, miles driven, and purpose of each trip.

The employer then multiplies the total business miles by their designated cents-per-mile rate to calculate the reimbursement amount. Reimbursements are usually added to the employee’s next paycheck and are non-taxable up to the CRA standard mileage rate.

What mileage is eligible for reimbursement?

Mileage reimbursement generally covers business trips between offices or work sites during the workday, travel to meet clients or vendors, trips to run work-related errands, and travel to the airport or train station for business purposes. Commuting between home and a temporary work location may also be eligible.

However, employees’ normal commute between home and their regular office is not reimbursable. Personal side trips or errands during the workday and travel from home to a second job are also ineligible for reimbursement.

CRA mileage reimbursement rates in 2024

The CRA sets an optional standard mileage rate each year, which is 67 cents per mile for business travel in 2024. Employers can use this rate or set their own lower or higher rate.

Reimbursements at or below the CRA rate are generally non-taxable to the employee. However, amounts above the CRA rate are considered taxable income unless the excess is returned.

CRA Kilometric Rates for 2024

This table indicates the rates payable in cents per kilometre for the use of privately owned vehicles driven on business travel

Province/Territory	Cents/km (taxes included)
Alberta	53.5
British Columbia	58.0
Manitoba	56.0
New Brunswick	59.0
Newfoundland and Labrador	60.5
Northwest Territories	70.5
Nova Scotia	59.5
Nunavut	68.0
Ontario	60.5
Prince Edward Island	57.5
Quebec	58.0
Saskatchewan	55.0
Yukon	72.0

Mileage tracking requirements

To claim mileage reimbursement, employees must keep contemporaneous records of their business mileage. A compliant mileage log should include the date, destination, purpose and total miles for each trip.

Many companies allow employees to automate expense tracking using apps that capture trip details via GPS. This simplifies the process of submitting accurate mileage records for reimbursement while ensuring compliance with company policies.

Maintaining accurate mileage logs is especially important for month-end close, as finance teams rely on these records to reconcile expenses, allocate costs correctly, and ensure accurate reporting. Automating mileage tracking helps streamline this process, reducing errors and last-minute adjustments during financial close.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

Learn More

Get Started for Free

Alternatives to mileage reimbursement

While mileage reimbursement is a common way for employers to compensate employees for business use of their personal vehicles, it’s not the only option. Some companies provide a flat monthly car allowance to cover estimated costs, while others use a fixed and variable rate (FAVR) reimbursement that combines a monthly allowance with a cents-per-mile rate.

For employees who drive frequently for work, a company-provided vehicle may be a more cost-effective solution than mileage reimbursement or car allowances.

If you’re looking for a simpler way to manage mileage reimbursements and other business expenses, we can help. Our all-in-one corporate card and expense management platform streamlines the process, saving you time and hassle. Get started for free with Float today and see how easy expense management can be.

As a finance leader, you know that managing corporate credit card expenses can be a time-consuming and error-prone process. Manual data entry, lost receipts, and lack of real-time visibility into spending can lead to costly mistakes and missed opportunities for cost savings. That’s where credit card expense management solutions come in.

In this article, we’ll explore the top credit card expense management solutions for 2024, highlighting the key features and benefits that can help you streamline your expense reporting process and gain better control over your company spending. Whether you’re a small business owner or a CFO of a large enterprise, you’ll find valuable insights and recommendations to help you choose the right solution for your needs.

Float — Top Credit Card Expense Management Solution

High limit corporate cards in both CAD and USD, perfectly paired with intelligent software that saves businesses 7% on their spend.

Issue unlimited virtual and physical cards

Capture receipts, enforce expense policy, and sync expenses to accounting systems

Earn 1% cashback* and save on FX with CAD and USD cards

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What is Credit Card Expense Management?

Credit card expense management is the process of tracking, categorizing, and reconciling corporate credit card transactions. It involves setting spending limits, enforcing expense policies, and ensuring compliance. The goal is to streamline the expense reporting process, reduce manual work, and gain real-time visibility into company spending.

With the right tools, businesses can automate credit card expense tracking, integrate transactions directly into accounting systems, and reduce the risks of fraud or policy violations. This ensures that finance teams have accurate, up-to-date records of corporate spending while allowing employees to make necessary purchases efficiently.

How Credit Card Expense Management Differs from Expense Management as a Whole

Credit card expense management is a specialized subset of expense management that focuses on tracking, categorizing and reconciling corporate credit card transactions in real time. Unlike general expense management, which includes reimbursements, vendor invoices and cash expenses, credit card expense management deals exclusively with company-issued credit cards. This allows businesses to automate tracking, enforce spending controls upfront and reduce manual reconciliation.

A key difference is that credit card expenses are automatically recorded, categorized and matched with policies, whereas general expense management often involves at least some manual submissions and approvals. Credit card management also enables real-time visibility into spending, fraud prevention through virtual cards and transaction limits and seamless integrations with accounting systems.

While both processes aim to control business spending, credit card expense management offers a more automated, proactive approach compared to the broader, often more reactive, nature of general expense management.

Benefits of Credit Card Expense Management Solutions

• Automation: Automate the capture and categorization of credit card transactions, eliminating manual data entry
• Policy enforcement: Enforce spending policies and limits in real-time, reducing the risk of fraud and overspending
• Simplified reporting: Simplify the expense reporting process for employees, with features like receipt management solutions and mobile apps
• Real-time visibility: Provide finance teams with real-time visibility into company spending, enabling better budgeting and decision-making
• Seamless integration: Integrate with accounting systems for seamless expense reconciliation tools and financial reporting

Key Features to Look for in a Credit Card Expense Management Solution

• Real-time transaction feeds from major corporate card providers like Visa, Mastercard, and American Express
• Automated expense categorization based on merchant codes and customizable rules
• Built-in approval workflows and policy enforcement
• Mobile apps for on-the-go receipt capture and expense submission
• Comprehensive reporting and analytics on company spending trends
• Integration with popular accounting software like QuickBooks, Xero, and NetSuite

Top Credit Card Expense Management Solutions

• Automated expense reporting: Solutions that eliminate manual data entry and streamline the expense reporting process
• Smart corporate card programs: Corporate card programs with built-in spend controls and real-time expense notifications
• AI-powered receipt matching: Receipt scanning and matching technology for accurate and efficient expense reconciliation
• Integrated spend management: Spend management guide with budgeting, forecasting, and analytics capabilities
• All-in-one platforms: Expense management solutions that combine corporate cards, expense reporting, and bill payments into a single platform

How to Choose the Right Credit Card Expense Management Solution for Your Business

• Evaluate your current expense management process and identify pain points and inefficiencies
• Determine your key requirements, such as the number of cardholders, expense policy complexity, and accounting system integration needs
• Compare features and pricing of different solutions, considering factors like user experience, customer support, and scalability
• Look for a provider that offers a free trial or demo to test the solution before committing
• Consider the long-term value and ROI of the solution, not just the upfront cost

Float — Top Credit Card Expense Management Solution

High limit corporate cards in both CAD and USD, perfectly paired with intelligent software that saves businesses 7% on their spend.

Issue unlimited virtual and physical cards

Capture receipts, enforce expense policy, and sync expenses to accounting systems

Earn 1% cashback* and save on FX with CAD and USD cards

Learn More

Get Started for Free

Implementing a Credit Card Expense Management Solution

• Develop a clear expense policy and communicate it to all employees
• Configure the solution to match your expense categories, approval workflows, and spending limits
• Import your chart of accounts and customize the integration with your accounting system
• Train employees on how to use the solution, emphasizing the benefits of automation and real-time reporting
• Monitor adoption and usage metrics to identify areas for improvement and optimize your expense management process over time

As you embark on your journey to streamline your credit card expense management process, remember that choosing the right solution can make all the difference. We invite you to explore the innovative features and benefits of our platform, designed specifically with the needs of modern businesses in mind. Get started for free today and experience the power of automated expense management firsthand.

As a finance professional, you understand the importance of efficiently managing employee expenses. In today’s fast-paced business environment, having a reliable and user-friendly expense report solution is crucial for maintaining financial control and compliance.

When evaluating expense report solutions, it’s essential to consider factors such as ease of use, integration capabilities and scalability, which will allow you to maintain expense management best practices. Choosing the right tool can significantly streamline your expense reporting process, saving valuable time and resources. We’ll also provide guidance on how to select the best solution for your unique business needs and ensure a smooth implementation.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

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What is an expense report solution?

An expense report solution helps businesses track, manage, and report employee expenses. It automates the expense reporting process, reducing manual effort and errors. Key features include receipt capture, expense categorization, policy enforcement, and analytics.

Benefits of using an expense report solution

• Streamlined workflow: Automating the expense reporting process saves time and increases efficiency.
• Real-time visibility: Gain insights into employee spending patterns for better financial control.
• Compliance assurance: Ensure adherence to company expense policies and tax regulations.

Top features to look for in a free expense report solution

• Mobile-friendly: A user-friendly mobile app simplifies receipt capture and expense submission on the go.
• Automatic categorization: Customizable rules automate expense categorization, reducing manual effort.
• Seamless integration: Look for solutions that integrate with your existing accounting software and corporate cards.
• Robust reporting: Comprehensive analytics provide valuable insights into spending patterns and trends.
• Multi-level approvals: Ensure proper review and authorization with customizable approval workflows.

Nice-to-have features

• Mileage tracking: GPS-based mileage tracking enables accurate reimbursement for business travel.
• Per diem management: Streamline travel expenses with automated per diem calculations.
• AI-powered audits: Detect policy violations and potential fraud using advanced machine learning algorithms.

How to choose the right free expense report solution for your business

• Assess your needs: Identify pain points in your current expense reporting process and prioritize must-have features.
• Consider user experience: Evaluate ease of use and adoption to ensure employee buy-in.
• Evaluate integrations: Ensure compatibility with your existing financial tech stack for seamless data flow.
• Plan for growth: Choose a solution that can scale with your business as it expands.

Key questions to ask

• Free plan limitations: Determine if the free plan offers sufficient features or if an upgrade will be necessary.
• Support and training: Inquire about available customer support resources and training materials.
• Security and compliance: Ensure the solution meets data privacy regulations and security standards.

Implementing and rolling out your free expense report solution

• Assign a champion: Designate an internal champion to oversee the implementation process and drive adoption.
• Configure policies: Align the solution’s settings with your company’s expense policy for consistent enforcement.
• Migrate data: Transfer historic expense data into the new system to maintain continuity.
• Communicate benefits: Clearly articulate the advantages of the new solution to employees.
• Provide training: Offer comprehensive training sessions and resources to ensure successful adoption.

Best practices for a smooth rollout

• Pilot testing: Begin with a pilot group to identify and address any issues before company-wide deployment.
• Gather feedback: Actively seek employee input and iterate on processes based on their experiences.
• Celebrate success: Recognize employees who embrace the new tool and share their success stories.

Reimburse Employees with Ease with Float

Canada’s only fully-fledged AI-powered expense reimbursement and mileage tracking platform — plus unlimited Visa Corporate Cards with cashback for high-frequency spenders.

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Maximizing ROI from your free expense report solution

• Leverage integrations: Optimize usage by integrating with your float corporate card for seamless expense tracking.
• Analyze spend data: Regularly review expense analytics to identify cost-saving opportunities and refine policies.
• Explore advanced features: Utilize spend controls and automated approvals to further streamline processes.
• Quantify impact: Calculate time and cost savings to demonstrate the solution’s tangible benefits.

Strategies to increase expense policy compliance

• Clear guidelines: Establish and frequently communicate explicit expense policies to all employees.
• Automated enforcement: Leverage the solution’s built-in rules and manager approvals to minimize violations.
• Real-time visibility: Provide employees with instant access to their expense data for proactive management.

Canada’s Best Expense Reporting Solution — Float

While free expense report solutions can significantly improve your financial processes, they may lack advanced features like AI-powered automation and direct payout capabilities. That’s where we come in. Get started for free with Float’s powerful expense management platform designed specifically for Canadian businesses.

Frequently Asked Questions

Is a free expense report solution secure?

Yes, reputable solutions prioritize data security and comply with industry standards like SSL encryption and regular backups.

Can I import my existing expense data?

Most solutions allow you to import historic data via CSV or through direct integrations with accounting software.

How long does it take to implement a new solution?

Implementation timelines vary, but with proper planning and training, you can be up and running within a few weeks.

What if I need more advanced features in the future?

Many free solutions offer paid plans with additional features, allowing you to scale as your needs evolve.

How much does Float cost?

Float is Free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn 4% interest on deposits, reimburse employees and pay vendor bills. If you need more sophisticated functionality, like over 20 physical cards, Netsuite integration, or an API solution, you will have to consider our paid Professional and Enterprise plans.

Does Float offer Credit Card Limit?

Float offers Charge Card and Prepaid funding models. You can apply (*Conditions apply. Book a demo to learn more) for unsecured, 30-day credit terms with high limits up to $1M, no credit checks and personal guarantees. Prepaid model offers 4% interest on all deposits with no cash lockups with account opening in < 24 hours.

How does Float help businesses save 7% of their spend?

Unlike traditional cards that get you to spend more, Float is the only corporate card in the world that helps businesses spend less. Through a combination of financial rewards like our 1% cashback, 4% interest on deposits, no FX fees with our USD cards and time savings of at least 8 hours per employee Float’s customers on average save 7% on their spend.

As a finance leader in a Canadian enterprise, you understand the critical role that effective expense management plays in driving business success. By streamlining processes, enhancing visibility, and enabling data-driven decision making, a robust expense management system can transform the way your organization operates.

In this article, we’ll explore the challenges of traditional expense management approaches and highlight how modern solutions are empowering Canadian businesses to optimize their financial operations. You’ll discover the key features to look for in an expense management platform and learn how these tools can help your enterprise achieve its goals.

Manage Spend with Float

Canada’s only finance & corporate cards Spend Management platform that helps businesses save 7% on their spend.

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What is Expense Management?

Expense management is the process of tracking, controlling, and optimizing business spending. It involves recording expenses, enforcing spending policies, and analyzing financial data to identify opportunities for cost savings and process improvements. Modern expense management solutions streamline this process through automation and real-time visibility, enabling finance teams to focus on strategic initiatives rather than manual tasks.

The Challenges of Traditional Expense Management for Canadian Businesses

• Time-consuming manual processes: Manual expense tracking is error-prone and diverts valuable resources from more strategic activities.
• Lack of real-time visibility: Without instant access to spending data, finance teams struggle to make informed decisions and identify potential issues.
• Difficulty enforcing policies: Ensuring compliance with company spending policies is challenging when relying on manual processes and post-transaction audits.
• Tedious reconciliation: Reconciling expenses with accounting systems is a time-consuming month-end task that can delay financial reporting.
• Administrative burden: Managing paper receipts and expense reports creates unnecessary administrative work for employees and finance teams.

How Modern Expense Management Solutions Benefit Canadian Enterprises

• Automated expense tracking: Eliminate manual data entry and reduce errors by automatically capturing transaction data from corporate cards and receipts.
• Real-time visibility: Gain instant insights into company-wide spending patterns, enabling proactive decision making and budget management.
• Simplified policy enforcement: Customize spending controls and approval workflows to ensure compliance with company policies.
• Seamless accounting integration: Integrate directly with accounting software like QuickBooks and Xero for faster, more accurate reconciliation.
• Streamlined expense reporting: Digitize receipt capture and simplify expense report submission via web and mobile apps, reducing administrative burden.
• Data-driven insights: Leverage robust reporting and analytics to identify cost-saving opportunities and optimize spending.

Key Features to Look for in an Expense Management Platform

• Powerful corporate cards: Look for corporate card benefits like built-in spend controls, instant transaction data, and seamless integration with your expense management system.
• Mobile receipt capture: Enable employees to easily capture and submit receipts on-the-go using a mobile app.
• Customizable workflows: Ensure the platform allows you to tailor approval processes and spending policies to your organization’s unique needs.
• Accounting software integration: Prioritize solutions that offer direct integration with your existing accounting software to streamline reconciliation.
• Comprehensive reporting: Choose a platform with robust reporting and analytics capabilities to gain valuable insights into spending patterns and identify areas for optimization.

Choosing the Right Expense Management Solution for Your Canadian Business

When selecting an expense management platform, it’s essential to evaluate your organization’s specific needs and pain points. Consider the inefficiencies in your current processes and identify areas where automation and streamlining can have the greatest impact.

Look for a solution that is tailored to the unique requirements of Canadian businesses, such as multi-currency support and compliance with Canadian tax regulations. Ease of use should also be a top priority, as a user-friendly interface will encourage employee adoption and minimize training requirements.

Assess the platform’s integration capabilities with your existing accounting and finance tech stack. Seamless integration with tools like QuickBooks and Xero will ensure a smooth transition and minimize disruption to your workflows. Finally, prioritize data security and privacy, especially when dealing with sensitive financial information, to protect your business and maintain client trust.

Implementing an Expense Management System: Best Practices

• Define clear policies: Clearly communicate expense policies to all employees to ensure compliance and minimize confusion.
• Provide comprehensive training: Offer training and support during the rollout phase to help employees adapt to the new system.
• Start with a pilot group: Begin with a small pilot group before deploying company-wide to identify and address any issues early on.
• Encourage adoption: Use incentives and gamification techniques to encourage employee adoption and maintain engagement.
• Continuously improve: Gather feedback from users and iterate on processes as needed to optimize performance and user satisfaction.

The Future of Expense Management for Canadian Enterprises

As technology continues to advance, expense management solutions will become even more sophisticated and powerful. AI-powered expense auditing and fraud detection will help businesses identify and prevent unauthorized spending, while predictive analytics will enable proactive budget management and forecasting.

Blockchain technology may also play a role in secure and transparent expense tracking, providing an immutable record of transactions and reducing the risk of fraud. Greater integration with corporate travel management systems will streamline the end-to-end travel and expense process, from booking to reimbursement.

Personalized spend insights and recommendations for employees will help them make more informed decisions about their business spending, while also identifying opportunities for cost savings at the individual level.

Manage Spend with Float

Canada’s only finance & corporate cards Spend Management platform that helps businesses save 7% on their spend.

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How Float’s Spend Management is Transforming Canadian Businesses

An all-in-one platform that combines corporate cards, expense management, and bill pay can revolutionize the way Canadian enterprises manage their finances. By offering 1% cashback on all spend and 4% interest on deposits, businesses can maximize their savings and improve their bottom line.

Automated receipt capture and one-click expense report submission streamline the expense reporting process, while seamless integration with popular accounting software ensures accurate and up-to-date financial data. Advanced spend controls and real-time transaction monitoring provide unparalleled visibility into company-wide spending, enabling finance teams to make informed decisions and identify potential issues before they escalate.

Float is the only Canadian Spend Management platform that helps businesses save on average 7% of their spend. Float offers powerful accounting automations, 4% interest on all funds held in Float and a Charge Card option. Float also features multitude of payment options with Corporate Cards, Bill Pay, and Reimbursements (including EFT payouts). Float is completely free to use on the Essentials plan, so why not just give it a try?

Most Canadians have become accustomed to the simplicity of mobile wallets for their consumer spending – but why hasn’t corporate finance caught up? 

It’s likely because Canada’s big banks promote a more traditional way of doing business, where only a limited few hold business credit cards (and share them) due to the risk associated with credit limits and the lack of visibility into spending. 

Thankfully, Float is now paving the way for Canadian finance teams to modernize their spending with smart corporate cards backed by intelligent software that allows companies to issue corporate cards to all team members, worry-free, with real-time visibility and control over company-wide spend.

By adding Float Cards to popular mobile wallet platforms like Apple Wallet and Google Wallet, you can experience the convenience of modern business spending, while enjoying full visibility, automation, and control for administrators, and a headache-free experience for your company’s cardholders.

Wondering how businesses like yours are using mobile wallets for their corporate card spending? Here’s how:

3 Ways Canadian Businesses Simplify Corporate Spend with Mobile Wallets

1. Avoid Shipping Delays

With Float, finance teams can create virtual cards for their team members that can then be easily added to mobile wallets. That means no waiting for physical cards to arrive by mail if an employee needs a card to make company purchases fast. 

2. Simplify Employee Onboarding

New employees can be assigned a virtual card while they wait for their physical card to arrive and seamlessly add them to their mobile wallets. Float Cards come with the added benefit of custom Temporary limits, perfect for one-time onboarding expenses with limits (and cards) that expire.

3. Tap-and-Pay

Making purchases while on business trips or on-the-go is now easier than ever before. Cardholders can simply add physical and virtual Float Cards (in CAD or USD) to their mobile wallet, while reducing card clutter and ensuring all their Float Cards are in one place. The convenience of tap-and-pay allows company spenders to quickly make company purchases without any hassle, with the added benefit of card controls that ensure transactions are within your spend guidelines.

💡Pro Tip for Easy Integration

To ensure a smooth experience when adding Float Cards to your mobile wallet, simply take a picture of your Float Card or the Card Details page. This simple step can save you time and eliminate any potential input errors, making the integration process even more straightforward.

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From enabling controlled team spending to streamlining employee onboarding, and providing a seamless spending experience for users, mobile wallets can revolutionize the way businesses manage their expenses. With Float Cards in your mobile wallet, you’ll have the tools you need to simplify spending and take control of your company’s financials, all at your fingertips.

Start adding Float Cards to your mobile wallets today. Not Float customer (yet)? Book a demo with our team here and we can show you how Float can help simplify (and control) your company’s spend with smart corporate cards, business spend software – and mobile wallets!

Are you a Canadian business owner tired of chasing employees for missing receipts over email, slack, or tools like HubDoc or Dext? Do you dread the month-end scramble to reconcile expenses? You’re not alone. Let’s explore Best Receipt Inbox Solution to Minimize Employee Chasing and how it can transform your financial processes and save you valuable time and resources.

The Receipt Compliance Challenge in Canadian Businesses

Receipt compliance is a crucial aspect of financial management for Canadian companies. It ensures that all employees, regardless of their position, meet the receipt requirements set by finance teams. However, many businesses struggle with:

1. Time-consuming receipt collection
2. Last-minute submission rushes at month-end
3. Incomplete or lost receipts
4. Difficulty enforcing expense policies across departments

Are you a Canadian business owner tired of chasing employees for missing receipts? Do you dread the month-end scramble to reconcile expenses? You’re not alone. Let’s explore how modern expense management solutions can transform your financial processes and save you valuable time and resources.

Legacy Receipt Inbox Tools

There are a handful of legacy receipt inbox tools on the market today that many Canadian businesses are still using:

1. HubDoc
2. Dext (ReceiptBank)
3. Gmail/Slack

None of these are the perfect solution as they introduce a ton of manual work for the Finance teams and your employees.

The Receipt Compliance Challenge in Canadian Businesses

Receipt compliance is a crucial aspect of financial management for Canadian companies. It ensures that all employees, regardless of their position, meet the receipt requirements set by finance teams. However, many businesses struggle with:

1. Time-consuming receipt collection
2. Last-minute submission rushes at month-end
3. Incomplete or lost receipts
4. Difficulty enforcing expense policies across departments

Introducing Float: A Game-Changer for Canadian Expense Management

Float, a Canadian fintech company, offers an innovative solution to these common challenges. Their Expense Policy feature is designed to streamline receipt compliance and simplify expense management for businesses across Canada.

Key Features of Float’s Expense Policy

1. Customizable Receipt Requirements: Set specific rules for different expense categories.
2. Automatic Card Pausing: Cards can be automatically paused when receipt compliance isn’t met.
3. Real-Time Notifications: Employees receive prompts to submit receipts immediately after purchases.
4. Multi-Level Approval Policies: Assign multiple approval layers for employee spend requests.

How Float’s Receipt Compliance Works for Canadian Businesses

1. Setup Submission Policies: Define transaction information requirements, including receipts and accounting codes.
2. Implement Approval Policies: Establish approval workflows tailored to your organization’s structure.
3. Assign Policies to Cards: Each card is linked to specific submission and approval policies.
4. Automated Receipt Collection: Employees receive links to upload receipts immediately after purchases.

Benefits for Canadian Companies

1. Improved Financial Visibility: Real-time insights into company spending.
2. Reduced Administrative Burden: No more chasing employees for receipts.
3. Enhanced Compliance: Ensure adherence to company expense policies.
4. Streamlined Reconciliation: Simplify month-end accounting processes.
5. Cost Savings: Reduce the risk of fraudulent or non-compliant expenses.

Simple Receipt Submission Process

Float’s user-friendly system makes receipt submission a breeze:

1. Employee makes a purchase using a Float card.
2. Float sends an automated text or email link.
3. Employee uploads the receipt and fills in purchase details.
4. Finance team can easily review and categorize the expense.

Why Canadian Businesses Should Consider Float

In today’s fast-paced business environment, Canadian companies need efficient financial management tools. Float’s receipt compliance feature offers:

• Real-time expense tracking
• Simplified accounting and reconciliation
• Reduced risk of lost receipts
• Improved employee accountability
• Time savings for finance teams and employees alike

Conclusion: Elevate Your Expense Management Game

For Canadian businesses looking to streamline their financial processes, Float’s innovative expense management solution offers a powerful answer to the receipt compliance challenge. By implementing this system, you can free up valuable time, improve financial accuracy, and focus on growing your business.

Ready to transform your expense management? Explore how Float can tailor its solutions to meet the unique needs of your Canadian business and drive smarter financial decisions today.

Float is Canada’s only all-in-one corporate cards, reimbursements, and bill pay platform that helps customers:

• Earn cashback on all categories and save on FX
• Generate 4% interest on funds held with Float
• Eliminate expense reports and receipt chasing
• Close the books 5x faster at the month-end

Want to learn how companies like Clutch, Neo, Knix, and 1,000s of other Canadian businesses on average save 7% of their monthly spend with Float? Get started with Float today by clicking the button below!

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Want to learn more before singing up? Book a demo today to learn more about the product from our team!

More often than not, company expense policies have not evolved. Employees will make a business purchase using personal funds, submit the necessary information to get it approved by finance, and later get reimbursed via payroll. That’s a lot of administrative overhead (and delayed financials). That’s why we’ve put together this Guide to a Modern Expense Policy.

With Float, finance teams can modernize their expense policy and become more proactive about their spending. But first…

What is an expense policy?

An expense policy is a set of guidelines that clearly defines:

• Acceptable and unacceptable business expenses
• Processes for expense approval and reimbursement

This framework helps finance departments follow expense management best practices, quickly validating expenses and giving employees a clear understanding of permissible spending.

Benefits of having expense policies

Implementing an expense policy offers numerous advantages:

1. Provides a structured approach to control company-wide spending
2. Standardizes rules for expense management
3. Prevents non-compliant expenses
4. Assists finance teams in efficiently evaluating spend requests
5. Enables senior management to control costs and forecast spending accurately

With everyone aligned on the company spending guidelines, senior management is better able to control costs more efficiently and calculate spending forecasts.

Types of Expense Policies

Expense policies can vary based on company size and industry. Some businesses opt for a broad, all-encompassing policy, while others create specific policies for:

• Travel
• Entertainment
• Departmental expenses

Key Components of an Expense Policy

A comprehensive expense policy typically includes:

• Expense Categories: Different types of expenses that employees can incur, like travel, meals, accommodation, or office supplies.
• Spending Limits: Clear limits for each expense category, specifying the maximum amount employees can spend without additional approvals.
• Approval Process: The steps employees must follow to obtain approval before incurring expenses, including any documentation required.
• Documentation Requirements: The supporting documents, such as receipts or invoices, that employees need to submit along with their expense reports.
• Reimbursement Procedures: How employees should submit expense reports, including the required forms or software systems.
• Non-Reimbursable Expenses: Expenses that are not eligible for reimbursement, such as personal expenses, fines, or alcohol.
• Travel and Accommodation Guidelines: Guidelines for booking flights, hotels, and rental cars, including preferred vendors and any travel-related policies.
• Expense Audit and Compliance: The process of auditing expense reports and the consequences of non-compliance with the policy.

What’s the downside?

While essential, traditional expense policies can lead to challenges.

High administrative overhead

Recent industry research reveals startling figures about corporate expense management:

• Typical businesses handle over 50,000 expense reports annually
• The cost of processing these reports can exceed $500,000 per year
• Companies spend around 3,000 hours yearly fixing errors in expense reports
• Correcting a single expense report costs an additional $50+ on average

A different US-based research from the Aberdeen Group shared these eye-opening statistics:

• Nearly one in five expense reports contain errors or missing information
• For small businesses, the average time to approve an expense report is over a week
• About a quarter of expense reports don’t comply with company policies
• Almost half of small businesses lack clear procedures for handling non-compliant expenses

These figures highlight a pressing need for improvement in expense management processes. As a business owner, you’d likely address any other system with such a high failure rate immediately. It’s time to give expense management the same attention and upgrade it for better efficiency and accuracy.

Employee Dissatisfaction and Frustration

Recent research by Allstar Business Solutions reveals alarming trends in employee expense claiming habits.

1. According to the study, over a third of workers never claim back expenses, with 58% avoiding claims under £5 (SmallBusiness.co.uk, 2018).
2. The survey of 2,001 British workers uncovered significant gender disparities, with women claiming less than half the amount men do on average.
3. Furthermore, 25% of employees have postponed or cancelled meetings to avoid out-of-pocket expenses, while 64% describe the claiming process as frustrating.

These findings highlight the urgent need for businesses to streamline their expense management processes, as inefficient systems not only impact employee satisfaction but can also hinder business growth by discouraging necessary expenditures.

The Future of Expense Policies: Automated Solutions with Float

Enter Float – a revolutionary solution that automates expense policy implementation. With Float, you can:

• Set spending boundaries directly on company cards
• Ensure automatic compliance with company guidelines
• Prompt cardholders to upload receipts and expense information in real-time
• Issue cards to all team members without worry
• Gain real-time visibility and control over company-wide spending

Here’s how:

✅ Approve spend before it happens

Multi-level Approval policies based on your company’s organization structure lets employees easily request to make a purchase from managers (with an audit trail).

🤖 Automatically collect receipts and GL codes

Submission Policies let you define the information employees are required to submit with each transaction, like receipts and GL codes, and will pause cards without them.

🛡️ Protect your company from unauthorized spend

Individual card controls like Merchant Controls let you restrict spending at certain merchant categories and custom Recurring and Temporary limits ensure your company doesn’t get overcharged.

📉 Get insights into your cash flow

Float’s Reporting feature provides a real-time overview of company spending with insights into who is spending what.

Conclusion: Revolutionize Your Expense Management

Don’t let outdated expense policies hold your business back. Embrace the future of expense management with automated solutions like Float. By implementing smart, efficient expense policies, you can take control of your company’s spending while fostering growth and innovation.